Exploring Peripheral Revenue Streams in Your Business
Revenue stream can simply be defined as a source of income or cash flow in a business. The idea is that your business, as a whole is involved in many activities that generate cash. This cash could come from direct sales, Wholesale, consulting, etc.
Therefore you would have three revenue streams in this hypothetical.
Many small businesses have a singular mode for generating revenue. For example the painter only generates cash by painting houses, office buildings, etc. The plumber only makes money when they offer their plumbing services. You get the idea.
However, it is imperative that small business owners take a closer look at the services or goods they offer, well, the main services or goods and see if there is the possibility to activate other revenue streams as a derivative of current services or customer base. The idea is to generate new revenue without significant new capital spending.
So, let me give you a real life example; So Bob operates an insurance insulting business. He mostly offers insurance advice to individuals. Bob has built a team of 20 insurance agents and has created systems and standards to operate his business.
He has written operating manuals, call scripts, handbooks for his new agents, on boarding webinars, etc. In this particular example, Bob could open up a new revenue stream by offering his consulting services to startup insurance agencies who are not in direct competition with him, to help them ramp up quickly.
He can do this with the current assets he already owns and will not have to go out and spend a whole bunch of new money to get that started.
I would advise any small business owner to consider reviewing their business to see if there is some niche out there they can serve within their current ecosystem.